Rent Agreement Stamp Duty Calculator

⚡ In shortA rent agreement has to be executed on stamp paper, and in most states an 11-month leave-and-licence agreement must also be registered — the two together are what people mean by 'rent agreement charges'.

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How it is calculated

Unlike property purchase, stamp duty on a rent agreement is charged on the value of the tenancy, not the value of the flat, so it is comparatively small. Maharashtra uses the Article 36A basis: 0.25% of the total rent for the term plus 10% of the refundable deposit. Other states charge a percentage of the annual rent — roughly 2% in Delhi, about 0.5% in Karnataka (often satisfied by a ₹200 stamp for an 11-month agreement), around 1% in Tamil Nadu and Gujarat. Registration is a separate fee, commonly ₹1,000 in Maharashtra and ₹1,100 in Delhi. This calculator applies your state's basis to the rent, term and deposit you enter. Agreements of 12 months or more generally must be registered; the popular 11-month term exists precisely to keep the paperwork lighter.

Duty here is on the rent, not on the property value

This is the point that surprises people who have paid stamp duty on a purchase. For a lease, duty is calculated on the rental consideration — typically the total rent over the term, often with a component computed on the refundable security deposit — rather than on the market value of the flat. That is why the amount is a fraction of what a sale attracts, and why a long lease costs more to stamp than a short one.

Rates and method vary entirely by state

Maharashtra computes duty on a formula involving total rent and a percentage of the deposit, with a separate registration fee. Delhi applies a percentage of the average annual rent, and Karnataka uses a lower percentage with a fixed stamp commonly used for eleven-month agreements. There is no national rate, and rates change by notification, so check your own state's current position rather than applying a figure quoted for somewhere else.

Why eleven months, and what it costs you

Leases of a year or more generally require compulsory registration, so the eleven-month term is a convention that avoids it. It is not a legal trick, but it has a real consequence: an unregistered agreement is weaker as evidence, and in a dispute over possession, deposit or rent that weakness lands exactly when you need the document most. Where the deposit is large or the term long, registering is worth the cost.

Insufficient stamping is a deferred cost, not a saving

An under-stamped instrument can be impounded and is generally inadmissible in evidence until the deficient duty and a penalty — often a multiple of the shortfall — have been paid. The practical result is that the agreement you most need to produce is the one you cannot rely on. Pay the correct duty before or at execution; retrospective regularisation is always more expensive.

Get the clauses right while you are stamping it

Since you are executing the document anyway, make sure it records the things that actually cause disputes: who pays utilities and society maintenance, the split between minor and major repairs, the annual escalation, the notice period on both sides, the deposit refund timeline and permitted deductions, and whether subletting is allowed. Take dated photographs at move-in and move-out. If you also claim HRA, get the landlord's PAN now — the rent receipt generator explains when it becomes mandatory.

Frequently asked questions

Why are rent agreements always 11 months?

Because a lease of 12 months or more must be compulsorily registered under the Registration Act, which costs more and creates a stronger tenancy record. An 11-month leave-and-licence agreement avoids that, though several states still require it to be registered.

Who pays the stamp duty — landlord or tenant?

By convention the tenant pays, but the law does not fix it. Whatever you agree should be written into the agreement itself.

Is an unregistered rent agreement valid?

It can be evidence of the arrangement, but an unregistered agreement has limited value in court and may not be accepted as address proof or for an HRA claim. Registering it is the safer course.

How is Maharashtra stamp duty on rent calculated?

0.25% of the total rent for the licence period plus 10% of the refundable deposit, with registration charged separately (commonly ₹1,000 in urban areas).